DENVER, September 30, 2002 ? Qwest Communications International Inc. (NYSE:Q) today refiled an application with the Federal Communications Commission (FCC) for authority to provide long-distance service in nine states: Colorado, Idaho, Iowa, Montana, Nebraska, North Dakota, Utah, Washington and Wyoming. Today Qwest provides local service to nearly 10 million customer lines in those states.
?Today?s refiling moves us a giant step forward in our effort to bring the benefits of real long-distance competition to customers throughout our local service territory,? said Steve Davis, Qwest senior vice president of policy and law. ?All nine states have agreed that Qwest should be allowed to provide long-distance service, unanimously concluding that greater long-distance competition is in the public interest.?
Today?s filing incorporates the full record of Qwest?s previous long-distance applications that the FCC examined in detail over the course of the summer, and that the nine states and the United States Justice Department had recommended that the FCC approve. On Sept. 10, Qwest withdrew those applications because the FCC had questions concerning historical accounting issues related to its long-distance subsidiary. Qwest now has addressed those questions by creating a new long-distance subsidiary ? Qwest Long Distance Corporation (QLDC) ? that does not have the historical financial accounting issues noted by the FCC.
In a Sept. 10 press statement, FCC Chairman Michael Powell stated that the issues remaining from Qwest?s original application were ?very narrow.? Davis stated that Qwest has now addressed such issues by creating QLDC.
?Over the past few weeks we?ve worked extremely hard to create an entirely new long-distance affiliate, similar to what Verizon, BellSouth and SBC did when they received long-distance approval from the FCC,? Davis stated. ?We?re starting with a clean slate. We believe that this approach fully addresses the concern we heard in Washington DC, and we remain hopeful that our application for all nine states will be approved on an expedited basis.?
Earlier this year, regulators in all nine states filed recommendations with the FCC in favor of Qwest?s long-distance re-entry. Since that time, the Oregon Public Utility Commission has also found that Qwest should be allowed to re-enter the long distance market in Oregon. All of the state recommendations were made after completing extensive hearings which found that Qwest is meeting all applicable requirements of the Telecommunications Act of 1996.
Residential and business customers in Qwest?s region could save more than $ 1 billion annually with Qwest?s re-entry into the regional long-distance business, according to a study by Professor Jerry A. Hausman, director of the Massachusetts Institute of Technology Telecommunications Research Program.
Qwest has spent more than $ 3 billion to open its markets to competitors and comply with the Act. Local phone service competition in Qwest?s territory is strong, underscoring that Qwest has met FCC requirements for its application. In most Qwest states, competitors have captured a far greater percentage of customers than they had in New York and Texas ? eight and 12 percent respectively ? at the time local phone companies there received FCC approval to offer long-distance service.
Qwest Communications International Inc. (NYSE: Q) is a leading provider of voice, video and data services to more than 25 million customers. The company?s 55,000 employees are committed to the ?spirit of service? and providing world-class services that exceed customers? expectations for quality, value and reliability. For more information, please visit the Qwest Web site at www.qwest.com.
This release may contain projections and other forward-looking statements that involve assumptions, risks and uncertainties. Readers are cautioned not to place undue reliance on these statements, which speak only as of the date of this release. These statements may differ materially from actual future events or results. Readers are referred to the documents filed by Qwest Communications International Inc. (together with its affiliates, ?Qwest?, ?we? or ?us?) with the Securities and Exchange Commission (the ?SEC?), specifically the most recent reports which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements, including but not limited to: the duration and extent of the current economic downturn in our 14-state local service area, including its effect on our customers and suppliers; the effects of our anticipated restatement of historical financial statements including delays in or restrictions on our ability to access the capital markets or other adverse effects to our business and financial position; our substantial indebtedness, and our inability to complete any efforts to de-lever our balance sheet through asset sales or other transactions; any adverse outcome of the SEC?s current inquiries into Qwest?s accounting policies, practices and procedures; any adverse outcome of the current investigation by the U.S. Attorney?s office in Denver into certain matters relating to us; adverse results of increased review and scrutiny by Congress, regulatory authorities, media and others (including any internal analyses) of financial reporting issues and practices or otherwise; the failure of our chief executive and chief financial officers to provide certain certifications relating to certain public filings; rapid and significant changes in technology and markets; failure to achieve the projected synergies and financial results expected to result from the acquisition of U S WEST, and difficulties in combining the operations of the combined company; our future ability to provide interLATA services within our 14-state local service area; potential fluctuations in quarterly results; volatility of Qwest?s stock price; intense competition in the markets in which we compete; changes in demand for our products and services; dependence on new product development and acceleration of the deployment of advanced new services, such as broadband data, wireless and video services, which could require substantial expenditure of financial and other resources in excess of contemplated levels; higher than anticipated employee levels, capital expenditures and operating expenses; adverse changes in the regulatory or legislative environment affecting our business; adverse developments in commercial disputes or legal proceedings; and changes in the outcome of future events from the assumed outcome included by Qwest in its significant accounting policies. The information contained in this release is a statement of Qwest?s present intention, belief or expectation and is based upon, among other things, the existing regulatory environment, industry conditions, market conditions and prices, the economy in general and Qwest?s assumptions. Qwest may change its intention, belief or expectation, at any time and without notice, based upon any changes in such factors, in Qwest?s assumptions or otherwise. The cautionary statements contained or referred to in this release should be considered in connection with any subsequent written or oral forward looking statements that Qwest or persons acting on its behalf may issue. This release may include analysts? estimates and other information prepared by third parties for which Qwest assumes no responsibility. Qwest undertakes no obligation to review or confirm analysts? expectations or estimates or to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
The Qwest logo is a registered trademark of, and CyberCenter is a service mark of, Qwest Communications International Inc. in the U.S. and certain other countries.
|Corporate Media Contact